Author: Consultant

  • Calendar: April 29 – May 3

    Monday April 29

    China industrial profits

    Euro area economic and consumer confidence for April. Germany releases inflation and retail sales data.

    Earnings include: Ag Growth International Inc.; Cargojet Inc.; Domino’s Pizza Inc.; Gibson Energy Inc.; Hammond Power Solutions Inc.; Sony; Topaz Energy Corp.

    Tuesday April 30

    China manufacturing PMI. Japan jobless rate, retail sales and industrial production.

    Euro area releases GDP and inflation data.

    (8:30 a.m. ET) Canada’s monthly real GDP for February. Consensus is for a rise of 0.3%.

    (8:30 a.m. ET) U.S. employment cost index for Q1.

    (9 a.m. ET) U.S. S&P CoreLogic Case-Shiller Home Price Index for February.

    (9 a.m. ET) U.S. FHFA House Price Index for February.

    (9:45 a.m. ET) U.S. Chicago PMI for April.

    (10 a.m. ET) U.S. Conference Board Consumer Confidence Index for April.

    Also: U.S. Fed meeting begins

    Earnings include: Advanced Micro Devices Inc.; Allied Properties REIT; Amazon.com Inc.; American Tower Corp.; Cameco Corp.; Coca-Cola Co.; Eli Lilly & Co.; First Capital Realty Inc.; First National Financial Corp.; Ivanhoe Mines Ltd.; McDonald’s Corp.; Mondelez International Inc.; New Gold Inc.; Restaurant Brands International Inc.; Starbucks Corp.; Stellantis NV; Stryker Corp.; 3M Co.

    Wednesday May 1

    Euro area markets closed for holiday. Chinese markets closed through Friday.

    U.K. manufacturing PMI for April.

    (8:15 a.m. ET) U.S. ADP National Employment Report for April.

    (9:30 a.m. ET) Canada’s S&P Global Manufacturing PMI for April.

    (9:45 a.m. ET) U.S. ISM Manufacturing PMI fpr April.

    (10 a.m. ET) U.S. construction spending for March.

    (10 a.m. ET) U.S. Job Openings and Labour Turnover Survey for March.

    (2 p.m. ET) U.S. Fed announcement with chair Jerome Powell’s press briefing to follow.

    Also: Canadian and U.S. auto sales for April are expected.

    (415 p.m. ET) Bank of Canada Gov. Macklem and Sr. Dep. Gov. Rogers appear before the Standing Senate Committee on Banking, Commerce and the Economy.

    Earnings include: Automatic Data Processing Inc.; Barrick Gold Corp.; Bausch + Lomb Corp.; Brookfield Infrastructure Partners LP; Canfor Corp.; Capital Power Corp.; CGI Inc.; CVS Health Corp.; Dayforce Inc.; Estee Lauder Companies Inc.; Fortis Inc.; Franco-Nevada Corp.; GFL Environmental Holdings Inc.; Gildan Activewear Inc.; Kraft Heinz Co.; Loblaw Companies Ltd.; Mastercard Inc.; Marriott International Inc.; Paramount Resources Ltd.; Parkland Fuel Inc.; Pfizer Inc.; Russel Metals Inc.; Stelco Holdings Inc.; Toromont Industries Ltd.; Tourmaline Oil Corp.; Vermilion Energy Inc.

    Thursday May 2

    Japan consumer confidence.

    Euro area manufacturing PMI for April.

    (8:30 a.m. ET) Canada’s merchandise trade balance for March. Consensus is for a $1-billion surplus.

    (8:30 a.m. ET) U.S. initial jobless claims for week of April 2.

    (8:30 a.m. ET) U.S. productivity for Q1.

    (8:30 a.m. ET) U.S. goods and services trade balance for March.

    (845 a.m. ET) Bank of Canada Gov. Macklem and Sr. Dep. Gov. Rogers appear before the House Standing Committee on Finance.

    (10 a.m. ET) U.S. factory orders for March.

    Earnings include: AltaGas Ltd.; Apple Inc.; Amgen Inc.; Andlauer Healthcare Group Inc.; Aritzia Inc.; Atco Ltd.; Bausch Health Companies Inc.; BCE Inc.; Canadian Natural Resources Ltd.; Canadian Utilities Ltd.; Capstone Mining Corp.; Cigna Corp.; Colliers International Group Inc.; ConocoPhillips; Endeavour Mining Corp.; Fairfax Financial Holdings Ltd.; IGM Financial Inc.; Maple Leaf Foods Inc.; NexGen Energy Ltd.; Open Text Corp.; Sandstorm Gold Ltd.; Stella-Jones Inc.; TMX Group Ltd.

    Friday May 3

    Euro area jobless rate. France industrial production; Italy jobless rate; UK services PMI

    (8:30 a.m. ET) U.S. employment report for April. A net increase of 250,000 jobs is the consensus, down from March’s 303,000, with the unemployment rate holding steady at 3.8%. Average hously earnings are expected to be up 4% from a year ago.

    (9:30 a.m. ET) Canada’s S&P Global Services PMI for April.

    (9:45 a.m. ET) U.S. S&P Global Services PMI for April.

    (10 a.m. ET) U.S. ISM Services PMI for April.

    Earnings include: ARC Resources Ltd.; Brookfield Renewable Partners LP; Magna International Inc.; Sprott Inc.; TC Energy Corp.; Telus Corp.; TransAlta Corp.; Westshore Terminals Investment Corp.

  • Imperial Oil gets first-quarter boost from higher production; refining throughput weighs

    Canada’s Imperial Oil saw higher profit in its first quarter on Friday as the integrated oil firm was helped by robust production, but saw maintenance activities weighing on its throughput volumes.

    Refining margins have eased from sky-high levels in 2022, when Russia’s invasion of Ukraine disrupted crude supplies. Profits stabilized through last year on weaker economic activity and an increase in global refining capacity.

    Throughput, the amount of petroleum product that moves through a refinery in a particular period, stood at 407,000 bpd, down from 417,000 bpd last year. It was also lower than the 415,000 bpd estimated by analysts, according to LSEG data, due to maintenance activities.

    Refinery capacity utilization was 94 per cent, lower than 96 per cent in the first quarter of 2023.

    Offsetting downstream performance, upstream production was 421,000 gross barrels of oil equivalent per day in the first quarter, up from 413,000 gross boepd last year.

    Output was helped by the highest ever first-quarter production at its Kearl oil sands site, the company said.

    Additionally, cash flow from operating activities also rose, to $1.08-billion, from cash flow of $821-million used last year in the same period.

    RBC Capital Markets analysts said despite the mixed results, they continue to have a constructive stance towards Imperial Oil, to reflect its consistently solid operating performance and commitment to shareholder returns.

    The company’s net profit stood at $1.2-billion, or $2.23 per share in the quarter ended March 31. Analysts had expected a profit of $2.03 per share.

     Imperial Oil Ltd. reported a first-quarter profit of $1.20 billion, down from $1.25 billion in the same quarter last year.

    The company says the profit amounted to $2.23 per diluted share for the quarter ended March 31, up from $2.13 per diluted share in its first quarter last year when it had more shares outstanding.

    Total revenue and other income amounted to $12.28 billion, up from $12.12 billion in its first quarter of 2023.

    Imperial says production averaged 421,000 gross oil-equivalent barrels per day in the quarter, up from 413,000 a year earlier.

    Refinery throughput for the quarter averaged 407,000 barrels per day, down from 417,000 barrels per day in the first quarter of 2023.

    Refinery capacity utilization was 94 per cent, down from 96 per cent.

    This report by The Canadian Press was first published April 26, 2024.

  • AEM (Agnico): Q1 Earnings Snapshot

    Agnico Eagle Mines Ltd. (AEM) on Thursday reported first-quarter earnings of $347.2 million.

    On a per-share basis, the Toronto-based company said it had profit of 70 cents. Earnings, adjusted for non-recurring costs, came to 76 cents per share.

    The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 60 cents per share.

    The gold mining company posted revenue of $1.83 billion in the period.

    Agnico shares have climbed 18% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $64.94, a rise of 15% in the last 12 months.

    _____

    This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AEM at https://www.zacks.com/ap/AEM

  • Precision Drilling seeing boost in demand as Trans Mountain start nears

    The completion of the Trans Mountain pipeline expansion is leading to a boom in demand for drilling services, said Precision Drilling PD-T +1.18%increase chief executive Kevin Neveu.

    The contract driller is seeing demand exceed its expectations, he said on an earnings call Thursday, as the expansion of the crude oil pipeline to the West Coast approaches a May 1 start of commercial operations.

    “Do we see customer interest increasing in anticipation of the Trans Mountain start up? The answer is resoundingly yes.”

    The company has 48 rigs currently operating where last year it had 38, and expects demand to continue. It also expects a boost to well servicing contracts.

    “We see this momentum continuing throughout the summer and exceeding our prior view on Canadian rig demand,” said Neveu.

    The growth is helping offset a retreat in the U.S., where activity is more muted by weak natural gas prices and operator consolidation, he said.

    The company reported 38 active drilling rigs in the U.S. for its first quarter compared with 60 for the first quarter of 2023.

    In Canada, Precision averaged 73 active drilling rigs for the quarter, compared with 69 a year earlier.

    The decline in U.S. activity helped lead its first-quarter profit to come in at $36.5 million, down from $95.8 million a year ago.

    The company says the profit amounted to $2.53 per diluted share for the quarter ended March 31, down from $5.57 per diluted share the same time last year.

    Revenue totalled $527.8 million, down from $558.6 million in the first quarter of 2023.

    The company is focused on cost reductions, paying down debt and returning profits to shareholders, said Neveu.

    Precision is also investing in automated rig technology that could mean future rises in demand won’t lead as much to booms in employment.

    The system has several more months ahead of field hardening before it’s commercially ready, but so far it’s working better than expected, said Neveu.

    “We’ll eliminate human work from the red zone on the drill rig floor and in the mast, while ensuring our customers safe, consistent, predictable and highly efficient rig floor performance.”

  • Rogers reports lower Q1 profit as it pays down debt from Shaw takeover

    Rogers Communications Inc. RCI-B-T -0.57%decrease reported lower first-quarter profit and higher revenue as it works to pay down debt from its $20-billion takeover of Shaw Communications Inc.

    The wireless giant had $256-million of net profit during the three-month period ended March 31, down 50 per cent from a year ago when it reported $511-million of profit.

    Meanwhile, the company’s revenue increased 28 per cent year-over-year to $4.90-billion, up from $3.84-billion.

    Rogers’s acquisition of Shaw, which closed on April 3 of last year, boosted revenue, while also resulting in higher financing costs and higher depreciation and amortization on assets acquired as part of the deal.

    Rogers chief executive officer Tony Staffieri said the Toronto-based telecom has delivered on its goal of finding $1-billion of savings stemming from the deal a year ahead of schedule, and it is now focused on reducing its debt leverage ratio by selling off non-core assets.

    Glenn Brandt, the company’s chief financial officer, said that process is taking longer than he had expected because the real estate market has been soft ahead of anticipated interest-rate cuts.

    “We do anticipate completing sales in 2024,” Mr. Brandt said during a conference call to discuss the telecom’s results, later adding, “We are being diligent to ensure we maximize proceeds.”

    Canadian telecom stocks have been under pressure lately owing to a combination of factors, including elevated interest rates, heightened competition and limited avenues for growth.

    Shares of Rogers fell by 3.5 per cent to $52.21 on the Toronto Stock Exchange in Wednesday afternoon trading.

    The telecom added 98,000 net new postpaid mobile-phone customers during the quarter, up from 95,000 during the same quarter last year. (Postpaid subscribers are those who are billed at the end of the month for the services they used, while prepaid customers pay upfront for wireless services.)

    It lost, on a net basis, 37,000 prepaid customers, compared with a net loss of 8,000 during the first three months of 2023.

    Ottawa recently announced plans to slash the number of temporary residents, and some analysts see that as a headwind for the sector, which has benefited from immigration in recent years.

    Monthly ARPU – average revenue per user – was $58.06, up 80 cents year-over-year from $57.26.

    Desjardins analyst Jérome Dubreuil characterized the ARPU growth as “impressive in the context of strong competition, and shows RCI’s commitment to its premium-brand-first strategy.”

    “This might not be the case for peers as they have not fully followed this strategy,” he wrote in a research note.

    Churn – the rate of customer turnover on a monthly basis – in its postpaid customer base rose to 1.10 per cent, up from 0.79 per cent during the same period last year.

    BCE Inc. is scheduled to report next week, with Telus Communications Inc. slated for May 9.

  • U.S. Weekly Jobless Claims Unexpectedly Dip To Two-Month Low

    The Labor Department released a report on Thursday showing an unexpected decrease by first-time claims for U.S. unemployment benefits in the week ended April 20th.

    The report said initial jobless claims fell to 207,000, a decrease of 5,000 from the previous week’s unrevised level of 212,000. The dip surprised economists, who had expected jobless claims to inch up to 214,000.

    With the unexpected decline, jobless claims dropped to their lowest level since hitting 200,000 in the week ended February 17th.

    The Labor Department said the less volatile four-week moving average also edged down to 213,250, a decrease of 1,250 from the previous week’s unrevised average of 214,500.

    Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also slid by 15,000 to 1.781 million in the week ended April 13th.

    The four-week moving average of continuing claims also fell to 1,794,000, a decrease of 7,250 from the previous week’s revised average of 1,801,250.

    Next Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of April.

  • U.S. Pending Home Sales Surge 3.4% In March, Much More Than Expected

    Pending home sales in the U.S. surged by much more than expected in the month of March, according to a report released by the National Association of Realtors on Thursday.

    NAR said its pending home sales index spiked by 3.4 percent to 78.2 in March after jumping by 1.6 percent to 75.6 in February. Economists had expected pending home sales to rise by just 0.3 percent.

    A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

    “March’s Pending Home Sales Index – at 78.2 – marks the best performance in a year, but it still remains in a fairly narrow range over the last 12 months without a measurable breakout,” said NAR Chief Economist Lawrence Yun. “Meaningful gains will only occur with declining mortgage rates and rising inventory.”

    Pending home sales in the South and West led the sharp monthly increase, soaring by 7.0 percent and 6.8 percent, respectively.

    The report said pending home sales in the Northeast also jumped by 2.7 percent, while pending home sales in the Midwest plunged by 4.3 percent.

    NAR also revealed it expects existing sales to surge by 9.0 percent to 4.46 million in 2024 and skyrocket by another 13.2 percent to 5.05 million in 2025.

    “Home sales have lingered at 30-year lows, and since 70 million more Americans live in the country now compared to three decades ago, it’s inevitable that sales will rise in coming years,” explained Yun.

    A separate report released by the Commerce Department on Tuesday showed a substantial rebound in new home sales in the U.S. in the month of March.

    The Commerce Department said new home sales spiked by 8.8 percent to an annual rate of 693,000 in March after plunging by 5.1 percent to a revised rate of 637,000 in February.

    Economists had expected new home sales to rise to an annual rate of 668,000 from the 662,000 originally reported for the previous month.

  • U.S. Economic Growth Slows Much More Than Expected In Q1

    A report released by the Commerce Department on Thursday showed the U.S. economy grew by much less than expected in the first quarter of 2024.

    The Commerce Department said gross domestic product increased by 1.6 percent in the first quarter after surging by 3.4 percent in the fourth quarter of 2023. Economists had expected GDP to jump by 2.5 percent.

    The GDP growth in the first quarter reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending.

    However, the positive contributions were partly offset by a decrease in private inventory investment and an increase in imports, which are a subtraction in the calculation of GDP.

    The Commerce Department said the notable slowdown in GDP growth compared to the previous quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending.

    The report showed consumer spending growth slowed to 2.5 percent in the first quarter from 3.3 percent in the fourth quarter, with an increase in spending services partly offset by a decrease in spending on goods.

    “The economy will likely decelerate further in the following quarters as consumers are likely near the end of their spending splurge,” said Jeffrey Roach, Chief Economist for LPL Financial. “Savings rates are falling as sticky inflation puts greater pressure on the consumer.”

    On the inflation front, the Commerce Department said the personal consumption expenditures price index surged 3.4 percent in the first quarter after advancing by 1.8 percent in the fourth quarter.

    Excluding food and energy prices, the PCE price index spiked 3.7 percent in the first quarter after jumping by 2.0 percent in the fourth quarter.

    “We should expect inflation will ease throughout this year as aggregate demand slows, although the path to the Fed’s 2% target still looks a long ways off,” said Roach.

  • This is Why Gold Could Rally All the Way to $3,000

    Gold could rally to $3,000, according to David Rosenberg, the founder and president of Rosenberg Research, as noted by MarketWatch.com. In addition, according to Citi analysts, gold could reach that level in the next six to 18 months thanks to investor inflows and hopes the Federal Reserve will cut interest rates. That’s in addition to safe-haven demand and growing interest in gold from global central banks. All of which is positive news for gold companies, such as U.S. Gold Corp. (NASDAQ:USAU), Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX.TO), Royal Gold Inc. (NASDAQ:RGLD), Franco Nevada Corp. (NYSE:FNV) (TSX:FNV.TO), and Newmont Corp. (NYSE:NEM) (TSX:NGT.TO).

    As noted on Yahoo Finance, “In March, China’s central bank added another 160,000 troy ounces to its reserves, marking its seventeenth consecutive month. As the Chinese yuan experiences a decline in its status as the world’s second most significant reserve currency, and countries such as Japan, Russia, Turkey, and Poland express concerns about overdependence on the US dollar, a notable shift towards gold has emerged. Looking ahead, analysts remain optimistic about gold’s outlook, with some predicting prices could climb even higher.”

    Based on the success of Kibali, which Barrick Gold has built into Africa’s largest gold mine, the company is ready to invest in new gold and copper opportunities in partnership with the government of the DRC, says president and chief executive Mark Bristow. Speaking to media at a site visit to the mine, Bristow said Kibali was on track for another value-creating year on the back of a strong production performance. It was also well set to replace the ounces that were being depleted by mining with more of the same high quality. “Kibali has transformed what was previously the disadvantaged north-east region of the country into a new economic frontier and a flourishing commercial hub. Of our $5 billion investment in the DRC, more than half has been spent with local contractors and suppliers, many of whose growth into substantial businesses we have promoted by enhancing their commercial and technical skills and providing them with the opportunities to exercise these. Kibali’s third hydropower station, for example, was built by an all-Congolese team,” he said.

    Royal Gold announced that management will host an Investor Update to provide an update on Royal Gold’s business, including 2024 guidance, on Wednesday, April 17, 2024 from 10:00 a.m. to noon EDT (8:00 a.m. to 10:00 a.m. MDT). A press release detailing 2024 guidance will be issued, before market open, on the same day. Prepared remarks by members of Royal Gold’s management team will be followed by a live question and answer session.

    Franco Nevada recently noted that, “In late 2023, we were challenged by the unprecedented production halt at Cobre Panama. We are hopeful that the issues can be resolved, although we have taken a prudent approach for the carrying value of the asset”, stated Paul Brink, CEO. “Despite the issue at Cobre Panama, our business remains robust and we continue to benefit from a long-duration, diversified portfolio. We finished the year with no debt and $1.4 billion in cash and cash equivalents. The balance of our business performed well in 2023 and is expected to grow in 2024 with contributions from the completion of the Tocantinzinho, Greenstone and Salares Norte gold mines. Our growth outlook through 2028 is driven by numerous new mines and mine expansions. $2.4 billion of available capital positions us well for attractive acquisitions in an environment where many project developers are capital constrained.”

    Newmont Corp. reported higher gold Mineral Reserves of 135.9 million attributable ounces for 2023 compared to the Company’s 96.1 million ounces at the end of 2022. Newmont has significant upside to other metals, including more than 30 billion pounds of copper reserves and nearly 600 million ounces of silver reserves. “Newmont has strengthened its position as the responsible gold leader with the industry’s highest concentration of quality operations, reserves and resources,” said Tom Palmer, Newmont’s President and Chief Executive Officer. “In 2023, we added more than 47 million ounces of gold reserves and 14 billion pounds of copper reserves through the acquisition of Newcrest and the continuation of our industry-leading exploration program. With the largest gold and copper reserve base in the industry, Newmont is well-positioned to deliver stable production and meaningful value to stakeholders today and in the future.”